Restructure on the cards at Deutsche
(16 June 2017 – Germany) According to a report from Bloomberg, Deutsche Bank is looking to restructure the organisation, separating sales and trading.
The changes will provide co-head of the investment bank and trading business, Marcus Schenck responsibility over corporate customers.
Additionally, he will lead the German bank’s corporate finance, global capital markets and the institutional client group, while his co-head Garth Ritchie will be tasked with products and processes and oversee operations including equities, fixed income and currencies.
The changes are aimed at ensuring the bank slows the market share loss, and achieves cost cutting targets of €700 million (A$1.02 billion) by 2018.
That comes as the bank pivots away from hedge funds and other financial firms, pledging almost two-thirds of the unit’s balance sheet for corporations. In 2011, institutional clients accounted for about twice as much revenue as corporate customers.
The memo cited by Bloomberg also said Deutsche’s institutional client group will be co-headed globally by Kenan Altunis and Stefan Hoops, who will report to Schenck and Ritchie.
The reorganisation is expected to start from 1 July 2017, and split the group into six distinct units:
- Corporate Finance, including Corporate Banking Coverage
- Global Capital Markets
- Global Transaction Banking
- Fixed Income & Currencies
- Institutional Client Group